South Korea Targets Household-Corporate Income Gap in Tax Plan

By

Kwanwoo Jun

Aug 6, 2014 3:51 pm KST

Bloomberg News

Is South Korea’s new policy of taxing companies that don’t pay out more of their cash reserves in wages and dividends fair?

In considering that, Seoul’s policymakers would like you to take these figures into account: total Korean corporate earnings accounted for 26% of the country’s gross domestic product last year, up from 13% in 1998. Meanwhile, total household incomes made up 61% of GDP in 2013, down from 74% in 1998.